EU Plan Could Hurt Thai Wood Exports

Wood exporters in Thailand could experience a sales hit as the country's leaders grapple with a European Union (EU) plan to ban the import of illegally harvested timber products, according to BangkokPost.com. Thailand annually exports nearly $310 million in timber that ends up in the EU, either directly or by way of China. The EU ban will take effect in 2013. The EU's Forest Law Enforcement, Governance and Trade plan is similar to the United States' Lacey Act, requiring due diligence to ensure wood is legally sourced, all the way down the supply chain. "Thai manufacturers still have no idea what it's all about, while nothing has been endorsed by the government that would support us in meeting the requirements," Jirawat Tangkijngamwong, secretary-general of the Thai Furniture Industries Association, told the Bangkok Post. What's more, Thailand annually imports about 11 million cubic meters of timber from neighboring countries like Laos, Burma and Malaysia; for this product to reach the EU market, Thai exporters must be able to prove the products are legally sourced. Malaysia and Indonesia are currently negotiating with the EU to comply with the plan.